BLBG: Treasuries Head for Monthly Gain, Japanese Bonds Rise on Egyptian Unrest
Treasuries headed for their first monthly gain since September, while Japanese and Australian bonds rose, as protests in Egypt fueled demand for the relative safety of government debt.
U.S. two-year yields were near the lowest level in seven weeks as Asian stocks slid and crude oil advanced. The Federal Reserve is scheduled to buy $6 billion to $8 billion of notes due from August 2013 to December 2014 today as part of its plan to spur the economy.
“The flight to quality is supporting Treasuries and other high-grade bonds,” said Tomohisa Fujiki, an interest-rate strategist at BNP Paribas Securities Japan Ltd. in Tokyo. “Risk appetite is declining.” BNP’s U.S. unit is one of the 18 primary dealers that trade directly with the Fed.
Benchmark 10-year Treasuries yielded 3.32 percent as of 9:38 a.m. in Tokyo, according to BGCantor Market Data. The 2.625 percent security maturing in November 2020 traded at 94 7/32.
U.S. two-year notes yielded 0.54 percent. The rate declined to 0.53 percent earlier today, the lowest level since Dec. 8.
To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net.
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.
